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The Alexandra Company Uses the Retail Inventory Method and the Average

Question 46

Multiple Choice

The Alexandra Company uses the retail inventory method and the average cost flow assumption for preparation of its interim reports. Information about Alexandra's inventory in the second quarter of 2014 is shown below: Retail$8001,400200(500) 1,300 Cost $255600Begining inventotyPurchasesNet markupsNet matkdownsSales\begin{array}{c}\begin{array}{lll}\underline{\text {Retail}}\\\$ 800 \\1,400 \\200 \\(500) \\1,300\end{array}\begin{array}{lll}\underline{\text { Cost }} \\\$ 255 \\600 \\\\\\\\\end{array}\begin{array}{lll}\\\text {Begining inventoty}\\\text {Purchases}\\\text {Net markups}\\\text {Net matkdowns}\\\text {Sales}\end{array}\end{array}
What is the estimated cost of Alexandra's inventory on June 30, 2014?


A) $270
B) $300
C) $585
D) $600

Correct Answer:

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